Yesterday’s signals were not triggered, as there was no bullish price action at 1.3240.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3165, 1.3061 or 1.3018.
- Put the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trades
- Go short following a very strong bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3250 or 1.3344.
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
GBP/USD Analysis
This pair dropped fairly strongly yesterday in line with the general move in favour of the U.S. Dollar, but has again held up relatively well, showing the Pound still has a lot of underlying bullishness. Today is going to be a very key day for the Pound, with its central bank giving its monthly guidance, and this could produce an even stronger movement today. The price has recently made a new 1-year high and is clearly in a long-term upwards trend, but I feel surprises in either direction would be likely to produce equally sharp movements.
Regarding the GBP, there will be a release of the Bank of England’s Monetary Policy Summary, Official Bank Rate and Votes at Noon London time. Regarding the USD, there will be a release of CPI and Unemployment Claims data at 1:30pm.